Follow Up

Is Bass Pro Shops Overpaying for Cabela’s?

Our skeptical view of cabela’s takeover value backfired Monday, as the hunting and fishing outfitter agreed to a $65.50-a-share buyout from rival Bass Pro Shops. The $5.5 billion cash deal is worth 26% more than the level where we suggested Cabela’s shares were fully priced (“Cabela’s Sale Doesn’t Merit a Premium Price,” June 4). The merger will make a handsome trophy for the activist hedge...